Adani Group to raise $3.5 billion via share sale in three firms

New Delhi, May 31

Billionaire Gautam Adani’s conglomerate is looking to raise about $3.5 billion through an equity share sale to institutional investors in the boldest comeback strategy after the ports-to-energy group was hit by a damning report of a US short seller.

To fund capex

• The entire fundraising will finance the capital expenditure needs of the group and is likely to be completed within the second quarter of the current fiscal

While Boards of Adani Enterprises Ltd — the group’s flagship firm — and electricity transmission company Adani Transmission Ltd have already approved raising up to Rs 21,000 crore (over $2.5 billion) through share sales to qualified institutional investors, the Board of Adani Green Energy Ltd is likely to do so for raising up to $1 billion in the next couple of weeks, sources aware of the matter said.

Post-Board approvals, Adani Enterprises Ltd and Adani Transmission Ltd have sought shareholder approval. Adani Green Energy Ltd’s Board may meet in the first or second week of June for approving the fundraising, they said.

The entire fundraising of $3.5 billion, which would go to fund the capital expenditure needs of the group, is likely to be completed within the second quarter (July-September) of the current fiscal.

The fundraising will be through the issue of shares to qualified institutional buyers. The sources aware of the matter said investors in Europe and the Middle-East have evinced strong interest. Some of the existing investors are likely to subscribe to the offer and some new investors may also join in, according to the sources.